You ar the financial manager of a construction company and you boss asks you calculate the Net
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Question:
You ar the financial manager of a construction company and you boss asks you calculate the Net Present of a new investment opportunity. the project incolves the construction of a new sports facility for the city. It is considered a very safe investment with a lower level of risk than the firm's normal operations. when calculating the Net present Value, is it appropriate to use a discount rate that is equal/higher/lower than fir,'s WACC? Why?
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